Wealth Creation Beyond an Athlete’s Contract and Pension
Paratum’s proprietary wealth accumulation solution creates an additional bucket of money for an athlete after their playing career ends, and does not interfere with the athlete’s current professional contract.
The athlete continues to earn the maximum amount of income from their team contract, while simultaneously accumulating cash in a tax deferred investment structure that will be available to them in the future when their contract ceases.
The proprietary solution allows the athlete to continue playing at the highest level and utilize the professional contract as a mechanism for creating the additional bucket of wealth in the future.
Paratum Sports utilizes extensive financial institutional relationships to finance nearly 100% of our solution in order to provide an athlete the piece of mind that in the event something unforeseen occurs during their career and/or after they retire, additional significant monies will be available to care for them, their family members, and/or friends (http://www.thestreet.com/story/11330331/1.html).
Although 60% plus of professional athlete’s declare bankruptcy within the first 5 years of retirement, Paratum Sports’ solution creates a smooth transitional structure for the retired athlete to have significant accumulated monies at their disposal growing until age 100.
Paratum Sports is committed to advising and consulting with athletes both during and after their playing career ends. To that end, our services provide athletes the flexibility to create asset protection solutions to help protect the monies and assets achieved to date as well as endorsements, contracts, appearances, etc. in the future.
Our firm works with premier lawyers and prominent law firms specializing in sophisticated asset protection solutions to customize a specific plan for an athlete given their overall earning potential.
Given the high profile nature of our clients, coupled with the reality that we live in a litigious society, our mutual objective is to protect athletes from bankruptcy, palimony, criminal accusations, etc. The overall objective is to always maximize protection for the athlete and his family and minimize the asset exposure to potential outside parties.
Proactive Tax Planning Techniques
Paratum has been advising global high net worth families for over 14 years and has introduced innovative solutions designed to proactively retain as much earned money as possible. Paratum Sports is bringing these same types of proven techniques to our professional athlete clients.
Recent changes in federal and state tax rates have directly impacted athlete earning power. As such, investments and structures designed to mitigate tax consequences have become an integral part of an athlete’s current and future planning.
Paratum Sports employs cutting edge philanthropic, tax differed, and legislatively mandated investments and solutions that deal specifically with active income.
Additional Revenue Sources
Paratum Sports is committed to helping athletes create alternative income streams to augment the income derived from their professional contracts. Due to the physical demands put on the human body by an athlete competing at the highest level, it is probable that athletes can and will sustain injuries over the course of their professional career. In some instances, these injuries can be career ending. Moreover, the damage sustained by the human body from competing at such high levels contributes to an athletes deteriorating mobility later in life.
Given our global client base and relationships, our firm is committed to facilitating introductions on behalf of athletes and companies that we represent and work with on a regular basis. Also, not every athlete is at the top 5% of their respective sport or plays a position that attracts significant consumer awareness. Nonetheless, these athletes deserve the opportunity to generate alternative forms of income.
The objective is simple: athletes MUST have alternative income streams and equity positions in products or companies in order to diversify their earning potential during their professional career and once that career ends.
Paratum Sports facilitates marketing opportunities with global companies such as Monster, MasterImage3D, UnderArmour, RedBull, Adidas, Peak, Natural Balance, etc. Our firm is now actively being courted to expand our services globally and address the soccer market, especially with FIFA right around the corner.